I gathered data to discuss Boise real estate for October, but to get straight to the point, the sales statistics for October are not fully available yet. Therefore, I will use the September figures for Ada County released by Boise Regional REALTORS as of October 8, and summarize rent and interest rates based on data from the end of October.

First, let's talk about home prices. The median sale price for single-family homes in Ada County in September was $575,000.

This is a decrease of 3.4% from $595,000 in August, but it is still up 2.9% compared to September of last year.

So, rather than saying it has "dropped," I think it is more accurate to say that it is stabilizing after the summer peak. This is also a seasonal pattern that repeats every fall.

The transaction volume was better than expected. There were 854 closed transactions in September, which is a 10.6% decrease from August, but an 8.5% increase compared to September of last year.

The number of pending contracts was 1,140, which is a 0.4% increase from the previous year, essentially remaining stable.

What caught my attention the most was the composition of listings. Out of 2,006 active listings in September, 1,051 were new constructions and 955 were existing homes.

New constructions accounted for more than half. While the total inventory is down 8.5% from last year, this suggests that existing homes are particularly scarce.

Prices also vary significantly. The median price for new constructions was $622,704, while for existing homes it was $561,065.

The difference is over $60,000. Even within the same county, whether you focus on new developments in the southwest or existing neighborhoods in Bench or West Boise can lead to completely different market perceptions.

The speed of sales also differs. The average days on market in September was 39 days, slightly up from 37 days in August.

Breaking it down, existing homes averaged 35 days, while new constructions took 48 days. The fact that new constructions take nearly two weeks longer suggests that builders may have room for negotiation.

The months of inventory stood at 2.4 months. Typically, a balanced market is considered to be between 4 to 6 months, so it still favors sellers.

Now, let's move on to rent. According to RentCafe, the average rent in Boise as of October 31 was $1,816.

This is a 7.62% increase from $1,688 a year ago. While home prices are rising in the 2% range, the significant jump in rent was honestly surprising.

By unit type, studio apartments averaged $1,478, one-bedroom units $1,626, and two-bedroom units $1,862. These are average listing prices, so actual contract prices may vary.

The variation by neighborhood is much larger. In the top tier, Depot Bench is at $2,120, Harris Ranch at $2,072, and downtown at $1,949.

In contrast, Central Bench is at $1,277, and Morris Hill at $1,249. This means there can be over an $800 difference within Boise.

If you are looking for rent, I hope you take advantage of this difference. If your commute allows, older complexes in the Bench area are still a viable option.

For those renting out properties as an investment, this could be good news. However, when calculating cash flow, keep in mind that many times the combination of purchase price and interest rates does not leave as much profit as expected, so be sure to consider that.

We should also touch on interest rates. According to Freddie Mac's weekly survey, the average 30-year fixed rate as of October 29 was 7.24%.

This is down from 7.32% the previous week, but over 1 percentage point higher compared to 6.17% a year ago. This rate difference significantly impacts buyers' monthly payments.

Yet, the fact that transactions have increased compared to last year suggests that frustrated buyers are consistently entering the market. This indicates that many households are choosing to act now rather than waiting for rates to drop.

One local issue to mention is that the Boise City Council approved a proposal on September 30 to use $225,000 from the Housing Investment Fund for the construction of ADUs on city-owned rental properties, with a vote of 5 to 1.

While the scale is small, I believe it is significant that the city is directly testing ADUs as a means of providing affordable housing. Homeowners considering backyard ADUs should keep an eye on the city's direction.

In summary, home prices are stable, inventory is focused on new constructions, rents are rising, and interest rates remain high. Based on the numbers alone, the burden is growing faster for renters than for buyers.

If I were to buy now, I would actively negotiate for closing costs or rate buy-downs on new constructions. Given the longer days on market, builders are likely to be open to negotiation.

If you prefer existing homes, since inventory is low, it's best to narrow down your preferred neighborhoods in advance. The average days on market for existing homes is 35 days, so you won't have much time to think after viewing.

The October sales statistics will soon be released in the monthly report from Boise Regional REALTORS. Once they are out, I will summarize them again in comparison to September.